Sbi home loan for non-residential properties

Here we look at the SBI home loan eligibility and the list of criteria that the borrower must adhere to for being eligible for the loan. Additionally, some of the key documentation for the loan is also discussed here.

Key features of SBI Commercial Real Estate (CRE) loan

Here are some of the stand-out features of the CRE offered by SBI.

• It offers among the lowest interest rates in the peer group
• There is the advantage of low Processing Fees, including administrative charges
• More importantly, the charges are transparent and there are no Hidden Charges
• No Pre Payment Penalty will be levied for early foreclosure of the loan
• Interest is charged on daily reducing Balance method
• Additionally, the Home Loan will be available as overdraft, so interest limited to usage

Who is eligible for the SBI Commercial Real Estate (CRE) loan

Here are basic eligibility conditions to be considered for the CRE loan

• This facility is only available to resident Indians, as defined by the Income Tax Act and not for non-resident Indians (NRIs) and persons of Indian origin (PIO).
• The borrower must have completed 18 years, which is also the age when persons are considered legally competent enough to enter into contracts on their own accord.
• Due to the risk factor of lending to older plan, the loan in this category will not be available if you are more than 70 years of age
• Generally the maximum loan tenure of the loan is up to 30 years, although the tenure would eventually be at the discretion of the lender

What documents must be submitted for CRE loans

Let us first look at the generic document requirements across the board.

• Employer Identity Card
• Loan Application Form: Completed loan application form duly filled in affixed with 3 Passport size photographs
• Proof of Identity (Any one): PAN/ Passport/ Driver’s License/ Voter ID card
• Proof of Residence/ Address (Any one): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhar Card

We now turn to the document requirements pertaining to the property papers. The following documents will be required.

• Permission for construction (where applicable)
• Registered Agreement for Sale (only for Maharashtra)/Allotment Letter/Stamped Agreement for Sale
• Occupancy Certificate (in case of ready to move property)
• Share Certificate (only for Maharashtra), Maintenance Bill, Electricity Bill, Property Tax Receipt
• Approved Plan copy (Xerox Blueprint) & Registered Development Agreement of the builder, Conveyance Deed (For New Property)
• Payment Receipts or bank A/C statement showing all the payments made to Builder/Seller, including borrower margins

Apart from generic documents and property papers, there are specific income related documents that have to be submitted. These include:

• Last 6 months Bank Account Statements for all Bank Accounts held by the applicants; stamped, and sealed by the bank manager
• If any previous loans are open from other lenders, the Loan A/C statement for last 1 year has to be additionally furnished to verify track record
• Income Proof for Salaried Applicant/ Co-applicant/ Guarantor, in case there is also a guarantor for the loan
• Salary Slip or Salary Certificate of last 3 months, ideally showing the full break-up and the deduction of tax and CPF for authenticity
• Copy of Form 16 for last 2 years or copy of IT Returns for last 2 financial years, acknowledged by IT Dept.

What happens if the borrower is a non-salaried business person?

If the borrower is a non-salaried business person, then the below list would be applicable for such persons.

• Business address proof. Nowadays, banks are insisting on business Aadhar Card with the exact coordinates captured in the document itself
• IT returns for last 3 years, acknowledged by the Income Tax Department as a proof of filing done
• GST certificate, if available, as issued by the GST authority and copies of latest GST return filed
• Balance Sheet & Profit & Loss A/c for last 3 years, ideally copies that are approved by the auditors of the business
• Business License Details(or equivalent)
• TDS Certificate (Form 16A, if applicable)
• Certificate of qualification (for C.A./ Doctor and other professionals)

To sum it up, individuals can also get non-residential property loans, apart from residential property loans from banks. The comprehensive SBI home loan eligibility criteria discussed above should give a birds eye view of the requirements.